INSTITUTIONAL CULTURE MODERATING THE RELATIONSHIP BETWEEN MONITORING AND EVALUATION SYSTEMS AND PERFORMANCE OF MICROFINANCES FUNDING ENTREPRENEURIAL PROJECTS IN KISUMU COUNTY, KENYA.

Abstract

Institutional Culture as a shared vision, mission, and mental assumptions that influence action and
interpretations within businesses by defining values, behavior, and employee attitudes. The study
provided evidence on processes relative to targets and outcomes. Descriptive survey research design and
pragmatism paradigm were adopted. Ten Central bank licensed microfinance institutions funding
entrepreneurial projects in Kisumu County Kenya, were targeted, a population of 4100 where 354
respondents from managers, Heads of departments and entrepreneurs of microfinance institutions were
derived. Quantitative and qualitative data was collected using questionnaires and interview guide. Data
was analyzed using descriptive statistics. The study found a strong positive relationship (R = .643; p =
0.000<0.05) and concluded that there exists a significant relationship between Institutional culture and
performance of Microfinance Institutions. To examine the extent to which Institutional culture moderated
the relationship between M&E systems and performance of MFIs funding entrepreneurial projects.
Multiple linear regression coefficients as well as the Pearson correlation results implied that there was a
significant moderating influence of institutional culture on the relationship between monitoring and
evaluation systems and performance of Microfinance institutions funding entrepreneurial projects.
ANOVA results indicated that the regression model for moderating influence of Institutional Culture on
Relationship between M&E Systems and Performance of MFIs funding Entrepreneurial Projects
indicated that Institutional Culture Moderated Data Management; (t=5.139 p-value =0.000). There was
no sufficient evidence that Institutional Culture moderated Routine Programme monitoring; (t=1.06 pvalue =0.290 and, M&E Communication; t=0.142 p-value =0.887. A good fit for predicting Performance
of MFIs funding Entrepreneurial Projects; F-statistics (3,314) =59.816 and p-value=0.00<0.05).
Key words: Institutional culture, microfinance institution funding entrepreneurial projects.